KONKA Established Joint Venture for the Middle East and African Market
CAIRO, Aug. 6, 2019 /PRNewswire/ -- On August 1, KONKA (000016.SZ), a leading Chinese home appliance company, announced during a signing ceremony a new joint venture partnership with HOHO which is set to serve both local and regional customers from its base in Cairo, Egypt. Among the featured guests were the former Egyptian Prime Minister Sherif Ismail, the Minster-Counsellor of the Chinese Embassy in Egypt Han Bing, and the Secretary General of the Cairo Chamber of Commerce in Egypt Khaled Mostafa.
To create more responsive and efficient supply chains, KONKA plans to offer solutions to enable the company to reduce costs and stay ahead of ever-changing customer expectation in the Middle East and Africa, empowering it to make breakthrough in its business model which is primarily based on traditional trade.
The joint venture was launched with an initial investment to achieve the annual production of 600,000 TVs, which will be followed by the second-round investment with the aim to establish an industrial zone which will extend the production capacity to 1 million TVs per year. The new company will expand the product categories to major appliance and mini electronics.
The new company will look not solely at its products, but also at the personnel development for the local employees, with plans on bringing new skills, management strategies and training program are high on the agenda, expecting to create more than 2000 jobs for the people in the region.
"Egypt has experienced extraordinary GDP growth in recent years, with a burgeoning population of consumers with soaring of household incomes. The formation of the joint venture with HOHO is a move to respond to the increasing demands of local consumers fueled by this economic growth," said Chang Dong, Vice President of KONKA Group Co., Ltd, President of Shenzhen KONKA Electronic Technology Co., Ltd, "our partner, HOHO, has reached the production capacity of 500, 000 TV sets. Through the partnership, KONKA will bring high-quality resources and technologies to build up the entire supply chain.
Looking forward, KONKA plans to increase its brand share and sales in Africa and the Middle East while continuing to expand its business categories to meet customer demand through market segmentation and differentiation through strong alliances with the local companies.
About KONKA Group
Founded in 1980, KONKA Group Co., Ltd started as China's first electronic Sino-foreign joint-venture. With its main business lines covering multi-media consumer electronics, portable communication products, home appliances, satellite set-top boxes and upstream components. In 2018, KONKA achieved the revenue of 46.126 billion RMB, a 47.71% increase year on year. To date, KONKA's products have reached households in 100 countries and regions in Asia, the Middle East, Australia, Africa, Europe and America.
About HOHO
Covering an area of 300,000 square meters, the Egyptian electronics manufacturer, HOHO Electrical & Furniture Co., Ltd, was founded 2009. The company's flagship products include TVs, and LED lights, electrical kettles and vacuum cleaner.
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